Suggestions for the flag
On June 7, 1948, the Provisional Government dealt addressed the issue of the design of the Emblem and Flag of the State of Israel. The following day, on June 8, the Provisional Government published an announcement in the newspapers inviting the citizens of Israel to submit proposals for the state emblem and flag. In the announcement, it was stated that the colors of the flag would be "light blue and white," and in the middle of the flag there would be "a Star of David or seven stars (in gold or some other color)."
The first set of components for the proposed flag represented the flag of the World Zionist Organization, which consisted of two light blue stripes with a Star of David in between. The second set was based on the proposal Theodor Herzl offered in his book Der Judenstaat - The Jewish State - that the Zionist flag be adorned with seven stars symbolizing seven daily hours of work.
At the time of the establishment of the state, the government was reluctant to choose the simple Zionist flag - without the seven stars - as the national flag. They did not want the state flag to be identical to the flag of the World Zionist Organization, because they were concerned that Jews in the Diaspora would find themselves flying the flag of a foreign country in their own native lands and thus be entangled with the potential dilemmas of dual loyalty.
The "Emblem and Flag Committee", which was established specifically for this purpose, received dozens of suggestions from citizens, who represented all sectors of the population. After reviewing the suggestions, the committee submitted two different proposals for a flag to the Provisional Government. At its meeting on July 11, the government chose one of the two proposals, a design submitted by the graphic artist Otto Wallisch, and passed it on to the Provisional Council of State for approval. The proposal in question consisted of two blue stripes, and between them, a white stripe adorned with seven Stars of David in a "bright color, whitish gold (or yellow)."
The Provisional Council of State rejected the government's proposal, and appointed a committee of its own to design a state flag and emblem.
After consulting with the president of the World Zionist Organization, Dr. Chaim Weizmann, as well as with various personalities representing Jewish communities in the Diaspora, the committee was finally convinced that dual loyalty would not be a problematic issue for non-Israeli Jews, and the Jews of the world would prefer to continue identifying with the Zionist flag. The committee therefore decided on July 28, 1948 to adopt the Zionist flag as the state flag. The final decision was then given over to the Provisional Council of State for approval. The Zionist flag was given the approval of the Provisional Council on October 28, and henceforth, this flag has been the official national flag of the State of Israel.